There aren’t enough gold reserves out there. Hence, the only way that gold investment as a percentage of financial assets can increase is by the price of gold bullion rising.
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New York, NY (PRWEB) December 09, 2011
Gold market research from Michael Lombardi, lead contributor to popular e-newsletter Profit Confidential, reveals why mainstream investors are only just now getting involved in gold bullion.
Debt fears in the eurozone resulted in demand for gold coins in Europe; more than doubling in the third quarter of 2011 compared to same period of 2010, according to data from the World Gold Council.
Lombardi says the gold buying went beyond just gold coins, as, last week, investors—mostly hedge funds—increased their gold long positions for the fourth consecutive week, according to CFTC data.
We are well into the phase of the gold bull market when retail and institutional investors start moving money into gold bullion, according to Profit Confidential. “Phase III is when the speculators and latecomers arrive on the scene. I’m predicting that 2012 will be a spectacular year for stocks of quality gold mining companies,” says Lombardi.
This is in addition to the third quarter of 2011, when world central banks made their biggest purchases of gold bullion during the past two decades. Lombardi has written an exclusive article for Profit Confidential entitled, Central Banks Back Buying Gold with a Vengeance.
Profit Confidential estimates that gold held for investment purposes is equal to one percent of all global financial assets. In the 1960s, gold held for investment purposes was equal to five percent of global financial assets.
Lombardi says “There aren’t enough gold reserves out there. Hence, the only way that gold investment as a percentage of financial assets can increase is by the price of gold bullion rising.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.